This agreement comes ahead of Pexa’s sale and purchase launch, in addition to its digital property exchange service for remortgages. Pexa expects to roll out the full proposition after gaining approval from the Financial Conduct Authority (FCA) in April to become an authorised payment institution (API).
This will allow Pexa to handle client funds on behalf of Amity Law to automate the settlement of funds and lodgement of title for transactions where the firm acts as the conveyancer.
Amity Law is also the first conveyancing firm to receive approval from the CLC.
Joe Pepper, UK CEO at Pexa, said: “This is a hugely significant step in our journey to launching sale and purchase – it sets the precedent for the rest of the market to follow, showing the robustness of our systems and controls and giving firms further confidence we operate with the highest standards of security and compliance.
“Having already proven that transactions can be digitalised, this will help us drive further momentum in the UK when it comes to the deployment of the right infrastructure and we’re looking forward to working with the industry in the lead-up to the full launch of sale and purchase in the coming months.”
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Sarah Ryan, head of legal practice and finance and administration at Amity Law, added: “Having Pexa on board as a TPMA is a game-changer. It reduces the risk of fraud for us and creates a safer, more transparent and more certain completion process to remove some of the angst borrowers currently feel. It’s a positive step in our own digitalisation journey, and we’re excited to see the impact.”
Jason Hinrichsen, director of finance and operations at the CLC, said: “The CLC is committed to fostering a regulatory environment that encourages innovation, delivers quality outcomes, and safeguards consumers from harm. TPMAs can deliver added security, transparency and efficiency to the home buying and selling process and we hope to see more practices adopt them. If any CLC practice would like to speak to the CLC about using a TPMA, we would be happy to engage with them.”
In June, Pexa carried out the first fully digital purchase transaction with Hinckley & Rugby Building Society.
